The US Small Business Administration has released data that reveals that around 76% of loans under the Paycheck Protection Program have been waived. The SBA oversees the initiative which is funded by the federal administration.
Data released up to November 28 reveals that with combined loans for the two years at $791.7B, there have been requests for forgiveness for $649.3B of which $633.7 has been excused. That comes to around 80%, according to the SBA.
Payment Protection Program Fund Initiated To Bail Out Small Businesses Struggling During The Pandemic
The Payment Protection Program was initiated as a fund to give money to minor business owners who were struggling under the effect of the pandemic. money that was used for the intended purpose of paying wages and overheads was converted into a grant, which was waived partially or even fully.
The data available with the Small Business Administration is collective at the national level and no state-wise breakup is available. 94% of the Payment Protection Program loans of 2020 have asked for forgiveness. 93% of such applicants had their loans partially or even fully forgiven. The total amount forgiven comes to $487.4B.
The 1st Payment Protection Program was launched last April while it was concluded by August. The 2nd round of this program was started in January this year and continued till May.
64% of the 6,327,579 loans issued in 2021 have asked for forgiveness. 62% of such applicants had their loan forgiven either partially or fully for a total of $146.3B. It is 54% of the full value of the loan which is $270.7B.
The district director Kelly Hunt at SBA’s Pittsburgh office covering 27 counties in western Pennsylvania said that the local lending communities have put in a great effort in the Payment Protection Program’s forgiveness initiative.
The SBA has also introduced an online portal for recipients to directly apply for waivers instead of routing their requests through banks. This facility is for Payment Protection Program loans of less than $150,000.